Michigan hybrid R&D joint venture gets tax credit

The Michigan state Senate plans to approve legislation which would give GM, DCX, and BMW a $9 million tax credit over 10 years to establish a research and development facility in Troy, Michigan. Each one of the manufacturers will receive a maximum of $3 million in tax credits, if employment targets are met. While the Hybrid Development Center has been operational for some time, developing the hybrid drive train scheduled to go into the Chevy Tahoe and future BMW and DCX products, the center is set to expand, with the joint venture facility planned to be fully operational by the end of 2007 with about 570 employees. The employees are a combination of existing employees from Michigan and Germany, and new hires. The majority of the employees are engineers and support staff. The investment in the joint venture will top more than $1 billion, so the $9 million in tax cuts seems like a pretty small cherry on top. The joint venture is also attracting other companies with a vested interest in hybrid technology, such as Compact Power Inc., which will move its North American headquarters and engineering center from Colorado to Troy, Michigan.
[Source: Detroit Free Press]